AP Choudhary, Chairman and Managing Director of Rashtriya Ispat Nigam (RINL) said the firm plans to mop up Rs 400-500 crore through debt market in the near future.
Speaking on the sidelines of a steel summit, he said the company plans to use the fund for expansion plans. But he did not disclose the timeline for the proposed fund raising plan.
The board of the company approved a 10-year borrowing plan of Rs 22,500 crore to fund its growth plans.
The capital expenditure plan of the firm received Rs 2,650 crore from the State Bank of India recently.
The firm plans to invest around Rs 12,500 crore to increase steel making capacity to 6.3 million tonne (mn t). It has already spent Rs 9,000 crore towards this.
In 2012-13, the firm had a crude steel production of 3.8 mn t. It hopes to complete the expansion (with capacity to produce 6.3 mn t by end of this year.
The company also plans to modernise its existing plant with an additional investment of Rs 7,000 crore to raise its capacity to 7.3 mn t per annum.
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